Bitcoin lead the stellar rally in the cryptocurrency world that took everyone by surprise, but it hit a temporary ceiling this year. However, the recent downfall in the prices of the virtual currency is far from dampening the spirit of investors with the new Bitcoin price prediction 2018 reports churning out almost every day.
Bitcoin price prediction 2018 and beyond
Currently, selling pressure has gripped Bitcoin as it is trading somewhere around $6,400. But, it definitely does not look like a lost cause with plenty of steam left even now, believes Billionaire Tim Draper. While talking about the future of Bitcoin, Draper cited the status of the regulations in the space.
Draper said that at present the state governments are competing with each other to draw the attention of the companies focused on the blockchain infrastructure. And, to attract more companies, the states must have “very clear and light-touch regulations for crypto,” says Draper. He even called out Bitcoin for being the most secure crypto and talked about the price at which the currency is expected to trade four years down the line.
This hedge fund is so optimistic about COVID-19 that they’re short Clorox [In-Depth]
A lot has happened since the coronavirus pandemic began, but aside from the temporary selloff in March, the stock market has continued to hum along as if nothing has been happening. There's no denying that the financial markets have been changed by the pandemic, and investors should be thinking differently when it comes to investing Read More
According to Draper, the Bitcoin price could hit $250,000 four years from now, i.e., in 2022. “I have no interest in selling my Bitcoin. What would I sell it into anyway?” he said, according to FXStreet. “Moving from crypto to fiat is like trading shells for gold. It is reverting to the past. I’m thinking long term I’ll use it, spend it, invest it, or just keep it.”
Fundstrat CEO Thomas Lee’s Bitcoin price prediction 2018 is also encouraging for the investors. Lee believes that Bitcoin would touch $25,000 by the end of the year. The expert emphasized the attendance of the Consensus event held back in May as a measure of increased interest in the blockchain technology, as well as cryptocurrencies.
“The notion of blockchain as a way to solve trust in the digital world has gained a lot of traction, especially out of Consensus. And what investors aren’t connecting is that you can’t necessarily just say ‘I believe in the Blockchain,’” Lee said, according to Global Coin Report. He added that Bitcoin and cryptocurrencies will play an important role in how blockchain operates in the security.
Lee gave three reasons to validate his bullish tone on Bitcoin. First, the cost of producing and replicating Bitcoin is almost the same as the current trading levels of the coin, suggesting it would not run any lower than its price now. Second, institutional investors are watching closely and are waiting on the side to enter at the right time when the regulations are more defined. Third, the historical data about the prices and trends of Bitcoin collected by Fundstrat supports his Bitcoin price prediction 2018 of $25,000 by the end of the year.
Bitcoin supporter and McAfee antivirus software founder, John MacAfee, believes the coin is on its way to hit $1 million by 2020, following last year’s prediction of $7,000, which has already been hit. He added that Bitcoin had surged faster than his model assumptions, and by 2020 it should hit the million mark. In addition to the economics behind the limited supply of Bitcoin, his prediction model also took into account factors like the increased adoption of Bitcoin and blockchain, as well as the cryptocurrency’s market cap of $162 billion, suggesting large room for growth.
Don’t worry about volatility
Speaking at the World Economic Forum in Davos, Jeet Singh, a Cryptocurrency portfolio manager, stated that the current volatility is not surprising in the cryptocurrency space. Cryptocurrencies have a tendency to fluctuate by 70% to 80% in their normal course, and thus, the volatility must not worry the investors.
Singh believes that cryptocurrencies bear a close resemblance to the current bellwether companies such as Apple and Microsoft, whose stocks were very volatile in the beginning. As these companies matured, their stock exhibited appreciation in value with less volatility. Singh advises long-term investors not to worry about the recent downward spiral in the cryptocurrencies saying this asset class is here to stay for longer than expected.
What should investors do?
After the flash crash on Sunday morning, there are several theories in play. One of them is that the popular South Korean exchange, CoinRail, was hacked and the cost of cyber “looting” is estimated to be somewhere around $40 million worth of crypto. Such theories created a major ruckus in the crypto markets, triggering a massive sell-off wiping out $20 billion in total crypto-market value in just a few hours.
Such an incident suggests that the cryptocurrency market is too volatile and uncertain for the investors to take the call in the right direction as of now. However, investors must take some cue from the big names coming in support of the cryptocurrencies and Bitcoin.